Application of Islamic Work Ethics and Employee Performance

Abstract

This study is carried out on the background of the prevalence of fraud in Sharia banking institutions due to the poor application of Islamic work ethics evident from the prevalence of cases in which clients' savings are embezzled and fictitious loans are given that cause loan rates to decrease and in the long run cause company performance to deteriorate. This decline of company performance reflects the poor performance of employees caused by the lack of enforcement of Islamic work ethics. This research aims to test the effect of implementing Islamic work ethics towards employee performance in Sharia commercial banks in Bandung city, Indonesia. This research employs a quantitative approach and collects data using a questionnaire. The participants in this research are 104 employees from several Sharia commercial banks in Bandung city, Indonesia. The data is then processed using a simple linear regression analysis. The results of this research shows that the application of Islamic work ethics in Sharia commercial banks has a positive and significant influence towards employee performance. In other words, when Islamic work ethics are implemented well, employees will also perform well and vice versa.